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Ms. Stella is an employee of large manufacturing company. She received a monthly salary 4,000 in the tax year 2019-2020 and dividend income of 22,500.
Ms. Stella is an employee of large manufacturing company. She received a monthly salary 4,000 in the tax year 2019-2020 and dividend income of 22,500. In addition to her salary she has been provided the following benefit by her employer. a) Living accommodation is provided for 9 months. The annual rental value is 14,000 p.a. Actual rent paid by the employer is 1,200 per month. b) The company pays the following ancillary services on behalf of the employee. Electricity Bill of 150 per month, Water Bill 100 per month, Repairs and Maintance of 200, and Gas Bill 400. c) Diesel engine motor car which cost 15,000 its Co2 emissions are 197g/km. The car is not meeting the RDE2 standard. The employer spent 500 on insurance, repairs and a license. d) She was also provided with a computer by her employer for private use, which has market value of 400. Company's official rate of interest is 2.5% per annum. Compute taxable income and net tax liability for the tax year 2019-20
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